China is going blow for blow with the United States. Beijing will reportedly raise tariffs on all U.S. goods from 84% to 125% starting April 12, the Ministry of Finance said on Friday, after the White House clarified that levies on Chinese goods rose to 145% this year.
“Given that American goods are no longer marketable in China under the current tariff rates, if the U.S. further raises tariffs on Chinese exports, China will disregard such measures,” according to the statement.
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In April 2025, President Donald Trump intensified the ongoing trade war by imposing a 125% tariff on Chinese imports, citing China’s unfair trade practices and lack of respect for international agreements. This move marks a significant escalation in the U.S.-China trade conflict, which has already seen multiple rounds of tariff increases.
In retaliation, China raised tariffs on U.S. goods to 125%, effective April 12, 2025. The decision has caused considerable concern among global business leaders and economists, as these escalating tariffs are expected to disrupt global supply chains and affect industries heavily reliant on Chinese manufacturing.
Major U.S. companies like Apple, Nvidia, and other tech firms, which depend on Chinese production, are particularly vulnerable to the changes. Experts warn that the increased tariffs could lead to higher consumer prices, exacerbate inflation, and negatively impact the broader economy, potentially triggering a recession in both nations. The long-term effects on global trade remain uncertain.
China has also reportedly warned that it will “resolutely counterattack and fight to the end” if the U.S. substantially infringes on its rights and interests. It also said America should take full responsibility for the damage caused by the tariffs.
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The 125% tariffs on Chinese imports, along with China’s retaliatory tariffs, are expected to negatively impact the U.S. economy. Consumers may face higher prices on goods like electronics and clothing due to increased import costs. U.S. companies relying on Chinese manufacturing, such as Apple and Nvidia, could see supply chain disruptions and delays.
Inflation could rise as businesses pass on increased costs to consumers. Additionally, the tariffs could slow economic growth and potentially lead to a recession, particularly hurting industries tied to global trade. Job losses in sectors like technology, retail, and agriculture may also occur.